President William Ruto lamented over unjust financial system threatening the global economy towards achieving Sustainable Development Goals (SDGs).
In his submission on September 22, 2024, at the United Nations General Assembly (UNGA) in New York, the president spoke of unfair financial system.
Ruto said in part, “The role of an unfair and unjust global financial system in compounding economic crises and deepening inequalities.
Development financing is not keeping pace with the economic realities and urgent needs of the developing world.”
He added, “Consequently, the gap between developed and developing nations continues to grow, creating a form of development apartheid.”
At the same time, Ruto said that the global economy is facing multiple shocks which threaten to undo progress made towards Sustainable Development Goals (SDGs).
He noted that the gravity of the situation has being highlighted by the 2024 Inter-Agency Task Force on Financing for Development (FfD4), which has sounded the alarm on a looming sustainable development crisis, driven by financing challenges that jeopardize both the SDGs and climate action.
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Further, Ruto hinted that the 4th International Conference on Financing for Development might be their last chance as UNGA to make radical changes required to realign development trajectories to meet the SDGs by 2030.
He, therefore, called on UNGA to work with urgency to ensure that all the financial gaps are closed, institutional divides bridged, and multilateralism trust is restored.
Ruto on Achieving SDGs by 2030
Moreover, Ruto hinted that achieving SDGs will require UNGA to address structural and financial issues hampering multilateral institutions, particularly their negative impact on developing countries.
He went further to highlight some of the challenges that must be addressed to counteract the current trend in the development agenda.
“These challenges include limited fiscal ability, rising debt, unfair credit rating frameworks, and uneven interest rates.” Ruto stated.
“In the face of deteriorating global economic conditions, worsened by a relentless climate crisis, these weaknesses limit opportunities, especially in low-income nations. Today, one in three developing countries is at risk of defaulting on their debt obligations,” he reiterated.
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However, the Addis Ababa Action Agenda was meant to address these challenges, Ruto said that it has lost momentum with only 15 per cent of the SDG, s on track.
Warning to UNGA
President Ruto warned that without urgent reforms UNGA is at the peril of losing a grip on the global development agenda.
He said that unless there is a realignment of global financing structures, the ‘growing finance gap’ will turn into a stark ‘sustainable development divide’, unjustly consigning millions to chronic vulnerability.
Conclusively, the President affirmed of Kenya’s support on the UN Secretary-General’s call for a USD 500 billion SDG Stimulus package, which is aligned with a vision to secure long-term financing for sustainable development and undertake the reform of the architecture of international financing which he hopes will bridge the financial divide between nations.
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